Goldman Mortgage Settlement Is Much Less Than Meets the Eye

April 12, 2016 12:49 AM

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The special credits negotiated by the banks are laid out in annexes connected to each settlement.

JPMorgan Chase, for instance, earned a $1.15 credit toward its settlement requirements for each dollar of loan forgiveness it offered within the first year, according to the settlement it completed in 2013. Goldman, in contrast, is getting $1.50 of credit for each dollar of loan forgiveness within t...

But that is just on paper. Buried in the fine print are provisions that allow Goldman to pay hundreds of millions of dollars less — perhaps as much as $1 billion less — than that headline figure. And that is before the tax benefits of the deal are included.